competitive brands. Governance, Awards & Convenience Foods (Lanka )PLC Ceylon Biscuits Ltd, Makumbura PANNIPITIYA Sri Lanka LKA. The company has established well organized product and process quality management system for which company has received ISO 9001 certification. So it is another threat appearing in the path of CBL. products. As a privately owned group of companies, CBL group has no clearly explicit mission. that in areas of biscuits, cake and chocolate markets, CBL has been market leader in the Ceylon Biscuits Limited employs 223 employees. the local market. Under the farsighted corporate leadership of the company, the company has aggressively expanded its operation, has achieved dominant market shares in its all major product categories and also has invested heavily in new plants, factories, technologies in order to sustain and improve current level of aggressive market performance of the company. Ceylon Biscuits was founded in 1968 to manufacture high-protein biscuits to supplement mid-day meals for school children under a joint programme of Care Organization, USA, and the Sri Lankan Government. engaged in a price competition with competitors in the Sri Lankan market. But snacks and serial bars etc can be considered as some kind of substitutes for biscuits. Even cake, fruit drinks, and Till that time from the starting of the Ceylon Biscuits, the company was engaged, in contract manufacturing for Huntley and Palmer of associated biscuits UK other than. This strategy is not tried through general cost cutting programs but by having technological superiority over its competitors. Therefore the group has invested in Seethawaka Industrial. All Maliban biscuits targets on all kinds of customers kids, youth and senior citizens. Switching cost of switching from CBL products to products of Under the farsighted corporate leadership of the company, the company has, aggressively expanded its operation, has achieved dominant market shares in its all major, product categories and also has invested heavily in new plants, factories, technologies in, order to sustain and improve current level of aggressive market performance of the. observed that significant growth in profits. Furthermore if products are not available in the nearest sales outlet of the indirect customers and price is not appealing to them, there is high tendency of buying any available similar product by the general public. As company has been able to grow continuously and make profits, business reengineering approaches are not in consideration at the moment. At the same time Strong marketing team referring internally as excellent force, which has been able to build the strongest brand name in Sri Lanka for four consecutive years, is another strength that gives competitive advantage for the company. 270 Employees . In order to get the maximum use of this sub continental market, exporting products from the Sri Lankan plants through Indian dealers as what CBL currently does, would not be sufficient to have a competitive edge in long terms. Entire transport of finished products is carried out by distributors. new entrants like Diana and Cherries have been able to widen their market share of the Bank of Ceylon is followed by less than 10 members. So there is a price competition in the industry. It could even be sai that Maliban is the pioneer of biscuit manufacturing. Custom essay writing service with Turnitin plagiarism report also provided. So it can be concluded, that in areas of biscuits, cake and chocolate markets, CBL has been market leader in the, Sri Lankan market for past few years and most likely the company would be able to, Fig: 1 Munchee Biscuits market share in the market. CBL group is highly engaged in research and development activities related to biscuits and chocolate manufacturing. Ceylon Biscuits Limited (CBL) is one of the fastest growing and largest company in Sri Lanka that manufactures and markets many leading brands in biscuits, confectionery, cereal, organic fruit products and many other categories globally. So for raw materials such as sugar, fat and milk powder, bargaining power of suppliers is high. CBL group is mainly focusing on a demographic segment which is young crowd Furthermore the company is in the process of value chain integration and already an ERP system has set up in the Ranala factory and further expansion of the ERP system covering the entire group of companies is in progress. Tutorial 01 of the module ME2170 - Electrical plant- 2020- Department of Mechanical Engineering, Faculty of Engineering. So it can be observed that power. Trusted by 2+ million users, 1000+ happy students everyday. Products, Private Further it is expected to extend this network to other CBL factories and Brand of the Year for two consecutive years (Awarded by Sri Lanka Institute of testimony to excellence performance of the company. Product Brand of the Year for four consecutive years Substitutes of cakes are also not clearly visible and situation for chocolate is also same. As a privately owned group of companies, CBL group has no clearly explicit mission. Strong brand images in the market and superior marketing capabilities. 52232605 Strategic Management Practices at Munchee, Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01. continental Indian region, the group has already bought land in Bangladesh for its first, So far the group has been operating as a privet limited company which is now, almost 12billon Rupees Company, is in the process of considering to become a public, limited company as company has grown too big already and also huge investments are in. This new feature enables different reading modes for our document viewer.By default we've enabled the "Distraction-Free" mode, but you can change it back to "Regular", using this dropdown. EBITDA of the company is EBITDA. customers, the company is investing heavily for advertising of its products for the Local chocolate manufactures like Edna, Kandos and Diana are major competitors in the local market and furthermore imported chocolate brands like Nestle and Cadbury are also competing in the market. The founder of the organization is Mr. Simon . wheat flour, sugar, fat, palm oil and milk powder in bulk quantities. So there is opportunity for new entrant offering equivalent quality together with a local taste for entering to the cake market. So the company is mass producing its products through capturing the biggest market share and continuously pressing harder to increase its market share while keeping prices of products in line or slightly higher to the competitors and thus CBL has been able to achieve high sales volumes while continuously capturing market share of competitors. Finally it can be said that continuous drive for innovation and creation of superior value to customers has largely contributed for the recent success of the CBL group. Shared beliefs and attitudes of the population play a great role in how marketers at Ceylon biscuits Limited will understand the customers of a given market and how they design the marketing message for . Some of international products formulas are protected under patents and high royalties are to be made for getting them for local use. market share than local giant chocolate manufacturer Kandos. CBL brands like Ritzbury and Tiara also have become dominant trusted brands in their respective product categories. Recently it was started setting Convenience Foods Lanka PLC is engaged in the manufacturing and marketing of Textured Vegetable Protein (TVP) and other food products. Ceylon Biscuits Limited was once a small manufacturing firm engaged in contract CBL is strategically employing advertising for value creation and changing mindset of customers. Expert Assignment Help on Ceylon Biscuits Limited SWOT Analysis Internal environment analysis of Ceylon. CBL provide food to big foreign market. It has a global existence across all continents recognized as an . Therefore product market and serials and snacks markets of the country. Title: Twenty years around the world. Manager at Ceylon Biscuits Limited. Therefore it is definite that the group would suffer in loss sale in biscuits production also in coming New Year season. Both Edna and Kandos that are long term players in the local chocolate While dealing in this contract manufacturing for Care International, it was noticed by the company . producing biscuits for Care International. Fax : +94-11-2379850 general public. Targeting - Maliban mainly targets middle & low classes rather than the supreme class. While dealing in this contract, manufacturing for the Care International, it was noticed by the company that excess, production capacity was there. Since direct biscuits and chocolate manufacturing. Obtaining product formulas necessary for biscuits, cake or chocolate production is also a barrier for new entrants. Our senior management team comprises of highly motivated leaders with expertise across a diverse range of industries who steer the day to day operations of the Group across its portfolio. network, CBL products are available at the closest sales outlet to the customers. Food manufacturing business is not an environmentally hazardous industry. So among 250 million and yet expanding Indian middle class population who is less price sensitive and more quality conscious, there is good market opportunity exist for the CBL group to expand its market. This well established quality management systems are also can be Marketing) Next barrier is present in terms of distribution network. Class / 4 StDr r ) Book il Copyright^ . Furthermore annual growth rate in India is even higher and expansion of Indian middle class population is expected to exceed that of Europe by 2016. Today CBL groups core business is food manufacturing and initially it was limited to biscuits manufacturing. company is facing difficulties of going for a price increase. profits is limited as company has to increase profit margins of products facing the threat Introduction Ceylon Biscuits Limited (CBL) is one of the fastest growing and largest conglomerates in Sri Lanka. It is clear that although CBL products are dominating the market, CBL product are in a price competition with rivals in the market. So utilizing this excess production capacity company decided to launch its own brand and that was how the Munchee biscuits brand which later became the dominant market-leading biscuit brand was introduced to the Sri Lankan market. So vulnerable. So it is considering the feasibility of building a housing complex for middle income group in old factory premises at Ratmalana. product market and serials and snacks markets of the country. (Source: AC Nielson retail audit), Fig: 2 Chocolate Slab market share of Ritzbury for year 2010 (Source: AC Neilson retail, When it comes to explain resources availability of CBL group, over 2000 work force is, employed by the group in their, Pannipitiya, Ranala, Minuwangoda, Ratmalana and, Kandy factories. manufactures like Edna, Kandos and Diana are major competitors in the local market and currently. The gap of the market is filled by dozens of regional small scale fruit drinks manufactures. In recent past prior to the FTA signing, Munchee tried to start its first overseas manufacturing plant by acquisitioning an Indian biscuits manufacturing company and attempt was failed due to unfavorable Indian regulations regarding FDI in India at that time. Seeking opportunities in new market segments is also being done. Munchee and recently company ventured into production of instant jelly under the brand Ceylon Biscuits Limited (CBL) is one of the fastest growing and largest conglomerates in Sri Lanka that manufactures and markets many leading brands in biscuits, confectionery, cereal, soya based products, organic fruit products and many other categories globally. Produced by: MFR, Karin Spence and the Online Distributed Proofreading Team at https://www.pgdp.net (This file was produced from images generously made available by The Internet Archive) So, bargaining power of packaging suppliers is not high. as well. Organizational Structure ITI 60th Anniversary Latest Events. This well established quality management systems are also can be considered as strengths of the company. Till late nineteen nineties Munchee was not the dominant biscuit brand in Sri, Lanka. proportionately. Both Diana and Ritzbury. name of Go Jelly. Strong visionary corporate leadership of the CBL group is one major factor giving competitive advantage for the company which was started in 1968 with about a two million investment and now accounting for over a 10 billion turnover. Plenty Foods (Pvt) Ltd is a subsidiary company of Ceylon Biscuits Ltd (CBL) located in Pallekele mixed residential area. Already CBL products are having 20% to 30% higher price than Indian products in the Indian market. 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If somebody is investing heavily for a mass production biscuits or a cake plant, efficient and large distribution network covering the entire island is also needed. Organizational analysis of Ceylon Biscuits Ltd, Ceylon Biscuits Ltd was founded in late nineteen sixties by under taking contract from, Sri Lankan government and Care International (USA) to manufacture protein enriched, biscuits for Sri Lankan school children as a mid day meal. Looking for a particular Ceylon Biscuits Limited employee's phone or email? COPYRIGHT DEPOSfK Digitized by the Internet Archive in 2011 with funding from The Library of Congress http://www.archive.org . With the end of terrorism in north and east of the island, new market is opening up for the company. Furthermore company has close ties with international distributors in India and Singapore so that company is in a position to export its products to 60 countries. Munchee biscuits are a collection of biscuit products under the company named CBL or Ceylon Ceylon Biscuits Limited. company is making profits, there may be no difficulty in borrowing. Although the Name of the brand Smak has. Furthermore CBL is having very efficient distribution network covering most parts of the island and now expanding into territories in the north and east and is another factor giving competitive advantage for the company. purpose of building brand loyalty. Ceylon Biscuits Limited Jan 2002 - Jan 2003 1 year 1 month. [1] [2] Maliban is a privately owned limited liability . the same time CBL took controlling share of Lanka Soy, Convenient Foods (Samaposha) This is a structure arrangement where by very few large banks with net work of branch office dominate the economy. Price wise Munchee is priced slightly above the level of As a privately owned group of companies, seen as a weakness of the group in relation to the chocolate production. Cake product of the CBL group Tiara is dominating the cake market with around 80% market share while producing about 12tons of cake per day. So in despite become one of the largest privately owned group of companies of the Island. Ranala factories, which is another resource base factor that makes the company company. Indian market opened up with the free trade agreement signed with the India. So insufficient production capacity, introduced to the Sri Lankan market some 8years back, price of a 10g packet was 20 Till that time from the starting of the Ceylon Biscuits, the company was engaged As there is In term of market share the flagship brand Munchee is holding over 60% market, share in the biscuit market of the country and cake brand Tiara is holding around 80%, market share by almost whipping out other competitors in the market. marketing in the island, may try to make an entry into chocolate market where Nestle is a brand name of Tiara and also wafer biscuits manufacturing under the same brand demand in order to make sizable presence in the Indian/Bangladesh markets. We produce 25 million packs of biscuits every month in our state-of-the-art manufacturing facility under stringent hygienic conditions. Furthermore opportunity exists for the company to invest in the north and east for new production plants utilizing the low cost labor and lands available there. of the group where there is no unionized environment available. This can be seen as a weakness of the group in relation to the chocolate production. MGT-9. Get Contact Info for All Departments. rupees. As a summary following weaknesses can be mentioned. Due to the price competition in the industry, company is facing difficulties of going for a price increase. One recent attempt was made by strong Indian biscuits brand Britania and was Therefore the group has invested in Seethawaka Industrial Park and where group is going to set up their new production facility solely for exports. Up to 5 same value to the customers. demand for products in the market. So there are times under patents and high royalties are to be made for getting them for local use. Social Factors of Ceylon Biscuits Limited Society's culture and way of doing things impact the culture of an organization in an environment. As a summary, following things can be observed as strengths of CBL group. and thirst for investments is also making the company financially vulnerable. Older population is expected to account for the majority of the society. In this case, food processing capacity of Cecil and established farmer network can be utilized for organic fruit exports. factory and another plant building is under construction in Ranala factory. But still there are some equipments and machineries in CBL, dating back to 1960s and are technically out dated. ISO 9001, ISO 14001, ISO 22000 & ISO 45001 Certified Company can be mentioned as better approach in terms of supply chain integration. Organizational structure of the group is pyramidal and the relationships within the strength that gives competitive advantage for the company. Yet increase of profits is limited as company has to increase profit margins of products facing the threat of loosing some market share due to unfavorable economic conditions in the country as well as in the world level. So that management would be able to over look better, the operations of the company. Little Lion cake can be considered as only competitor in the market and Little Lion accounts for around 12% market share and dozens of small scale manufacturers and domestic producers supply remaining 8% to the market. Although at the starting CBL was having similar biscuits production plants, they was rushed to upgrade electrically heated plant and use diesel to heat ovens and now CBL is further upgrading their plant to heat with LP gas. Other than this, international and Indian biscuits companies as well as dozens of local small scale biscuits manufacturers are also competing in the biscuits market in the island. Obtaining ISO 14000 environmental management system certification by CBL Presently CBL consist more than 50 food products and the management is planning to spread the organization in the international markets. Last year Cecil plant was relocated to Minuwangoda from Avissawella and now in a process to increase the production of fruit drinks. Since direct customers are appointed by the company, they are bound to purchase and distribute company products and they can not sell or distribute similar products to the CBL products. brand in the market. needs to develop marketing mix strategies to achieve its desired results within the market that it serves. For a price competition with rivals in the market biscuits targets on all of. Owned Limited liability biscuits, cake or chocolate production is also making the company has established well organized and. Is not an environmentally hazardous industry some equipments and machineries in CBL, dating to. 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